Russian Retaliation #1: Russia Largest Bank Halts Foreign Currency Loans

Russian Retaliation #1: Russia Largest Bank Halts Foreign Currency Loans (ZeroHedge, April 2, 2014):

It didn’t take long for Russia to launch the first retaliatory salvo against the unexpected JPMorgan “act of aggression.” Moments ago Bloomberg just reported that Sberbank,  the largest bank in Russia and all of Eastern Europe, just halted the issuance of consumer loans in foreign currency. Bloomberg adds that “Sberbank, Russia’s biggest lender, holds 43.3% of nation’s consumer deposits, 32.7% of consumer loans and 32.1% of corporate loans.”

Why is this important? Well, it is possible that the biggest Russian bank is running low on foreign reserves with which to issue non-ruble loans, which is rather unlikely for a bank which is defacto part of the Russian financial system. Still, it would be problematic if Russia is indeed telegraphing its commodity-export driven economy is suddenly low on Dollars and/or Europe’s artificial, life-supported currency.

And then there is another possibility: as we explained yesterday, “what JPM may have just done is launch a preemptive strike which would have the equivalent culmination of a SWIFT blockade of Russia, the same way Iran was neutralized from the Petrodollar and was promptly forced to begin transacting in Rubles, Yuan and, of course, gold in exchange for goods and services either imported or exported.” And this: “One wonders: is JPM truly that intent in preserving its “pristine” reputation of not transacting with “evil Russians”, that it will gladly light the fuse that takes away Russia’s choice whether or not to depart the petrodollar voluntarily, and makes it a compulsory outcome, which incidentally will merely accelerate the formalization of the Eurasian axis of China, Russia and India.”

Judging by the first retaliation, which just showed what Russia thinks of the petrodollar regime by voluntarily isolating itself from it, this is certainly a growing possibility.

3 thoughts on “Russian Retaliation #1: Russia Largest Bank Halts Foreign Currency Loans

  1. Squodgy: Great article, and this is what I see, too.
    The banks (for whatever greedy gut reason) are working to destroy the US shaky status as a world reserve currency.
    Meanwhile, over half the world no longer uses the dollar, and this is nothing new.
    When I was in Grand Cayman, I tried buying something in a shop, and they didn’t want US money……..and that was 15 years ago. This movement away from the US has been gradual and carefully planned. Fools like Saddam and the Libyan leaders were too vocal too soon, both lost their lives.
    This time, it has been carefully engineered.
    The US is over the cliff, and we are falling fast.
    Thanks for a great source of information!

  2. The idea that Iran was badly hurt by these childish sanctions is a total joke. The Iraq war has made them very rich, and they are a valuable and fruitful trading partner for China, Russia, UK, and many other nations. Iran accepts all currencies, including gold.
    If they have a shortage of foreign currency it is because they have been divesting themselves of them. Once the world saw the deep corruption in US markets, they quietly started divesting themselves of US currency.
    The US is sitting on piles of paper currency with nothing behind it…….and the world is sick of their riding roughshod over everyone. This is a world movement, a pity we have idiots in charge.
    This boycotting of the dollar is fast becoming a world enterprise. It is a violence free way to fight a nation who exports death as their primary product.
    It will be very hard on us in the US, we have no power in Washington or anywhere else. Prices will climb even more, and the day of $4.00 gas will soon be $8-$12 per gallon.
    We are as despised as was Germany in 1940.
    The hell is just beginning.

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